Donegal Investment PLC

SSr0

Can anyone shed some light as to what went on recently here? My uncle had his shares bought out from him and he received a cheque last week.

Did they buy all of them? He seems to think it was only 50% but I can't seem to find the share prices anywhere.

Also, is that money liable for tax or has it already been deducted?

Buford T. Justice XIX

I came across two articles that might help a bit.


https://www.independent.ie/business/irish/donegal-investment-group-shareholders-in-line-for-50m-windfall-36613092.html

Donegal Investment Group confirmed that capital return yesterday after it received €41.4m of a €45.5m settlement made last year in relation to a dispute connected with its exit from Monaghan Mushrooms.

http://www.donegaldaily.com/2017/05/25/donegal-investment-group-ends-dividend-payments-to-shareholders/

The group will be switching payments to a more ‘tax efficient form of a share buy-back programme’ – as revealed at the Company AGM this week.

It looks like they are stopping paying dividends and instead are buying back shares from the shareholders. They will still own the same amount of the company but the value of the smaller number of shares they own is greater, if I'm reading that correctly?

Edit: Don't know the tax situation but I imagine Capital Gains tax would be due on the increase in value of the shares?